Diesel prices are expected to remain elevated throughout 2023.
Dan Kowalski with CoBank Knowledge Exchange says diesel supplies are tight and will probably remain that way.
“In a sense that I don’t see what’s going to fix the problem.”
He points to the War in Ukraine and a lack of domestic oil production as primary contributors.
“We’re looking at diesel prices nationally over $5.00, and we’ll probably have (prices) somewhere close to that, north of $4.50, in 2023.”
At the farm level, Kowalski says diesel costs will drag down margins next year.